Category Archives: 3 Falling Crows

These are patterns made up of three relatively long consecutive bearish (crows) or bullish (soldiers) candlesticks that close near or on their lows (crow) or highs (soldiers). Each candle will open around the previous close and in almost all the cases, there will be no body gap. While the patterns may appear to suggest reversal, it is more often seen when a new move has been set off.

Nifty & Bank Nifty Trading Strategy as on 23 May’13

Nifty as on 22 May’13– 6094.50 (-19.60)    Bank Nifty as on 22 May’13 – 13008.25 (-58.25)

From last three sessions, Nifty and Bank Nifty gradually moving lower. Common trait which I observed is, for sometime during an intraday, it gives a hope for reversal and just after some optimistic traders gets in long position, it reverses on downside, and give negative close.

Although last three sessions Candlestick patter is not 3 Falling Crows, but appearance is something similar to that. And if we see, onset of such a pattern warns of more moves to come in the same direction.

Momentum is also gradually moving lower, it follows the footsteps of price action.

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